5 Questions to refine your books
The Covid-19 outbreak had businesses of all shapes and sizes fighting for survival, the implications of which now mean that some processes within our businesses come into question. Many are now – after adapting and refining sales and marketing tactics to suit pandemic life – looking to develop the accounting side of their business.
Claire Flinders, Mojo Accounting founder and qualified chartered management account who has worked for large companies for over 25 years, said: “Knowing your cashflow and reviewing your accounts on at least a monthly basis is going to be key as we come through the pandemic. Particularly as the furlough scheme comes to an end and any grant funding starts to dry up.”
Helping small businesses access finance expertise that usually only exist for large companies, Claire asks five key questions to help get your books back on track.
Improving cashflow in 2021
1. Are you taking the time to be as organised as possible?
Send out invoices promptly and ensure you are chasing up any late payers consistently.
2. Are you taking advantage of the software available?
Use accounting software such as Xero or Quickbooks which links to your bank and makes sure your accounts are kept up to date. From here you can easily check outstanding invoices.
3. Are you thinking far enough into the future?
Produce a cashflow forecast, at least for the next six months. This allows you to take action now to make improvements if you hit any rocky patches.
4. Are you actively seeking ways to save money?
Look to cut any costs or arrange new agreements for things like utility bills. There’s no harm in asking to delay any payments or arranging payment plans.
5. Are you finding new ways to make money?
You could increase your prices or there may be alternative income streams that you can exploit now that buyer behaviour may have changed in your industry.